Reference no: EM132360244

NOVA (Northern Virginia Community College), located in Fairfax County, in Virginia, has been looking for alternative sources of revenue. The committee in charge of identifying those opportunities has reached a decision to rent spaces that could be better utilized and, at the same time, be appealing to potential renters. The first targeted area is the student union, and the idea is to use the area for one or two bookstores. Potential candidates include Barnes and Noble and a local chain that has grown rapidly in the past 5 years, among others. The rent the college can charge per square foot of space depends on the firms' profit (excluding rent) and hence on whether the market has a monopoly or a Cournot duopoly. Which number of stores is better for the college in terms of rent? Which is better for students? Why?